Trade officials around the world yesterday welcomed an initiative by the European Union to revive the stalled Doha world trade round - though the move was attacked by France.
The European Commission had earlier signalled that it stood ready to compromise on several issues that have long bedevilled the current round of talks. Most important, Brussels offered to eliminate all export subsidies on farm goods and to take a softer line on the adoption of controversial new trade rules. This offer was contained in a letter to the trade ministers of all 148 members of the World Trade Organisation. The three-page letter is signed by Pascal Lamy, the EU trade commissioner, and Franz Fischler, the farm commissioner.
"I hope this will provide a shot in the arm to the overall negotiations," said Robert Zoellick, US trade representative. "We are pleased that Commissioner Lamy and Commissioner Fischler have taken this important step." He added that the US "will support the move by agreeing to negotiate a parallel elimination" of the subsidy elements in export support used by the US.
| Maybe we could cut some of the agricultural payments here. |
This is one of the key conditions Brussels attaches to its offer, along with an "acceptable outcome" in the negotiations on liberalising other areas of farm trade.
Mr Zoellick's praise stood in marked contrast to the reaction of the French government, which has long been the strongest supporter of the EU's farm subsidy regime. Herve Gaymard, the French farm minister, described the letter as "exceeding the negotiating mandate" and "tactically very dangerous". He added that "we are very much against this letter".
| "Who told this person to speak on his own? We will tell him what to say!" |
A Commission official denied Mr Gaymard's allegations: "Obviously we are within the limits of our mandate. We discussed this with our member states, and the vast majority of member states were in favour."
Oxfam, the international charity that is usually one of the Commission's toughest critics, also welcomed the letter. It said: "A genuine offer to eliminate export subsidies would be cause for great celebration."
| Oxfam and the US on the same side. Wow. |
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